India Forex Advisors / Market Commentary /28_June_2011

By IBT Staff Reporter On 06/28/11 AT 6:31 AM

Technical Outlook:EUR/USD: Euro is currently trading at 1.4125 levels. Euro continues its downfall against the greenback on concern of Europe's debt crisis. Support is seen around 1.4055 levels while resistance is seen at 1.4223 levels (100 days daily EMA). EUR/INR (63.69): Exporters can cover short term exposure at 64 levels while importers can cover on dips near 63.30 and below. EUR/INR is likely to trade in the range of 63.30-64.00 levels today. Short term: Bearish. Medium term: BearishGBP/USD: The Sterling is currently trading at 1.5926 levels. Sterling continues to lose grounds against the dollar on Friday, as speculation over more monetary stimulus compelled traders to cover their long positions and to short GBP on every bounce. Support is seen at 1.5900 levels and resistance is seen at 1.5978 levels (55 days Weekly EMA). GBP/INR (71.80) Exporters can cover short term exposure near 72.40 levels while the importers can wait to hedge near 71.60 levels. GBP/INR is likely to trade in the range of 71.50-72.10 levels today. Short term: Bearish. Medium term: BearishAUD/USD: The Aussie is currently trading at 1.0441 levels. The Aussie is weak against the US dollar as Eurozone crisis and weak Global fundamentals continue to dampen for higher-yielding assets. Support is seen at 1.0422 levels (21 days weekly EMA) and resistance is seen at 1.0589 levels (55 days daily EMA). Exporters are suggested to book exposure around 1.0600 levels while Importers can hold cover partially their near term exposure at 1.0200-1.0300 and further on dips. Short term: bearish. Medium term: Maintain neutralJPY: Yen is currently trading at 80.68 levels. Yen pair is expected to weaken further due to continous risk aversion. Support is seen at 80.50levels (21 days Daily EMA) while resistance is seen at 80.79 levels (200 days 4hrly EMA). Yen Exporters are suggested to book exposure below 80.00 and Importers can cover above 81.00 levels. Outlook: Short term to medium term: Maintain Bearish for the pair.Gold: Gold is currently trading at 1504.18 levels. Gold collapsed heavily as a rising dollar eroded the appeal of precious commodities as an investment and eased the risk of accelerating inflation. Support is seen at 1488.11 (100 days daily EMA) while resistance is seen at 1514.38 levels (55 days daily EMA). Outlook: Medium term Bullish.Oil: Oil is currently trading at 90.46 levels. Oil continues its downward direction on concern the growth in U.S. is slowing and as the IEA recently said it's prepared to release more stockpiles to stabilize prices. Support is seen around 90.00 levels while resistance is seen at 92.22 levels (21 days 4 hrly EMA). Outlook: short term Bearish, Medium term neutral.Dollar Index: DI is currently trading at 75.66 levels. Dollar is strong across the board as risk aversion takes hold of the market and it seems investors are taking long positions in the dollar against other currencies as their was no signal by the FED last week about any further stimulus to be introduced in Dollar . Looking ahead Core PCE Price Index m/m data is expected neutral and Personal Spending m/m data is expected weak. Support is seen at 75.03 levels (55 days daily EMA) and resistance is seen at 75.72 levels (100 days daily EMA). Outlook remains Bullish for Short Term and Medium Term: Bullish (Post June - July).

DISCLAIMERThese views/ forecasts/ suggestions, though proffered with the best of intentions, are based on our reading of the market at the time of writing. They are subject to change without notice. Though the information sources are believed to be reliable, the information is not guaranteed for accuracy. Those acting in the market on the basis of these are themselves responsible for any profits or losses that might occur, without recourse to us. World financial markets, and especially the Foreign Exchange markets, are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved.